Business Plan for a New Cosmetic Company

Topics: Skin, Human skin color, Retailing Pages: 53 (19681 words) Published: December 29, 2010
Executive Summary
Bluespa is a company that has created a brand concept consisting of both skin care and athletic apparel utilizing multiple channels of distribution. We are seeking recurring investment to fund the growth of the brand, and position the company for an IPO. The plan that follows explains our market, our value proposition and our market segmentation strategy. The detailed financial plans provide a clear view of our sales and profit forecasts. These plans show how Bluespa will reach profitability in our third year of operation and generate shareholder return on equity within five years. Mission

To establish Bluespa as an important brand that represents quality in skin care, fitness apparel and accessories. We will accomplish this using high quality manufacturing and research, a creative marketing program, and a comprehensive distribution network using both brick and mortar retail outlets, internet presence, and a consumer catalogue. By utilizing this multi-channel approach we will be able to reach the niche market for quality personal care products rapidly and efficiently. It will allow us to develop Bluespa as the brand for quality skin and body care products within our target market. The Company

Bluespa is an Oregon corporation. The company is 100% owned by Ray and Barbara Brunner, the founders. The board will consist of seven members: Mr. R.G. Brunner, one additional member of management, three outside directors appointed by Mr. Brunner, and two representatives appointed by the major investor(s). Together, Mr. and Mrs. Brunner have 65 years worth of combined experience in the retail industry. Both of them have held senior management positions with major companies in this area. The company's main office is located in Portland Oregon. The leased office space should be sufficient for planned staff size growth within the first few years. From Year 1 through Year 5 we will grow in head count from ten to sixty-five. The majority of this growth will come in store personnel, the rest will be support staff. We believe the plan shows a controlled and conservative ramp up of personnel. Products

Skin and body care products will be developed and produced at our contract facilities in France and California. Production of apparel products will be managed through our contract manufacturer of sport-related apparel. Production of accessories will be managed through a contract with a manufacturer of quality sports-related accessories including: bags, hats, totes and socks for the wholesale market. Bluespa will have two product lines, skin care and fitness apparel. Within the skin care line we will offer a wide array of products including eye makeup removers, cleansing creams, facial scrubs and masks, and body lotions. Within the fitness apparel line we will first offer Lycra products such as tights and shorts, plus polyester and cotton tops. Our pricing strategy is to position our products with a shelf price that is in the mid to lower quadrant of high-quality products and brands. We have accomplished this by making careful market comparisons and adjusting our packaging size. We believe our ability to create future product opportunities and growth will only be limited by our imagination and our ability to attract talented people who understand the concept of branding. The Market

Bluespa will occupy a unique market position. No other brand offers a specialty line that includes skin care, cosmetics, fitness apparel and accessories. However, within each category significant brands do exist. Quality and price vary widely within each group. Bluespa will be positioned as a quality brand. The U.S. cosmetics market has seen large annual growth rates over the past decade. Last year alone, the market grew by over $1 billion. Clear divisions between traditional categories are becoming blurred and new lines, such as aromatherapy are also emerging, creating new openings for profit. In fitness apparel and accessories there is a...
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